story of pending allegations involving gab, aneice contingents in the country. garbo has been formerly notified of this decision. and finally, 4 civilians are set to make history in the next hour on board a space ex mission. without any professional astronaut, some boards inspiration for mission will blah store from cape can full in florida all that there are 3 or 4 days before. splashing down in the atlantic ocean billionaire entrepreneur, jason isaacs, in this leading 3 other amateurs on the trip with the mission, almost entirely automated. ah, this is al jazeera here all the headlines. the leaders of us, the st. louis. yeah, and the u. k. have announced and you in the pacific security alliance, seen as a strategy to cancer, china's influence in the region. the all cas alliance will see corporation in areas

including cyber and underwater. defense really also gets you clear pirates, submarines, the american shout. august will bring together our sailors, our scientists, and our industries maintain and expand our edge and military capabilities and critical technology such as cyber artificial intelligence, quantum technologies, and undersea domains. now as a key project under august, we are launching consultations with australia acquisition of conventionally our nuclear powered submarines. both north and south korea have tested ballistic missiles than or tested what it called a railway borne michelle system. so on my cell phone, a submarine of kind of fans acting, deputy prime minister, is denied reports. he was hurt in a clash with a mindful faction. in a video released by the taliban,

up to gunny barrages says he's safe and well full days of rumors that supporters oberon to have crashed with members of the her connie network. a taliban affiliated group based near the focused on a border us olympic gymnasts of accused the f. b. i of turning a blind eye to sexual abuse. they suffered at the hands of former team, dr. larry nasa for athletes gave emotional testimony to the senate judiciary committee, masters currently serving several life sentences. and the un says it's withdrawing hundreds of got any star from the central african republic, full and allegations of sexual abuse. un mission in the c a r says go on, have opens and investigation previous piece allegations of not legit to any convictions. and those are the headlines. stay with us on al jazeera, come to the cost is up next. frank assessments, by way it is, let's say again, freedom surprising informed opinions. what you saw happening is from market it was

what it was for. petune is the critical debate that we are here. it's not between cool. and then we have content here that 4 years re running that even people in depth analysis of the days global headlines inside story on our jazeera, i use hello, i'm mulling by this is counting the cost on al jazeera. you look up a wealth of business and economics this week, remember bricks. they were meant to transform the global economic order, with the exception of china, brazil, russia, india. and then later on south africa been a disappointment. we'll take

a look at why and question how long before emerging countries can realistic i think playing that north atlantic older. also this week, zambia, the 1st african country to default on its debt in the panoramic era bought a new president has invested clamoring for that. even as he warned they could be a big hole in the finances than originally and ship shortages could not millions of dollars from also make a style. and that's not the only challenge they face. we talk to the chairman of de la about das, disrupting the most of the industry. ah, 2 decades ago the investment bank, goldman sachs, came up with an acronym that was supposed to shift the economic balance of power bricks that is brazil, russia, india, and china would over time come to dominate the rankings of the wells,

which is the economies that was good reason to be optimistic, big growing countries which collectively represented 45 percent of the world's population. the leaders began to hold regular meetings. they started $100000000000.00 development bank. they even invited south africa to join the club to complete that acronym. bought 20 years on the group has really failed to live up to its those expectations. well, most of them take a look at this just on g d p basis. china has stormed ahead with cumulative growth of almost a 1000 percent since 2001 that's almost double the gains india has made. and you can see south africa that lagging way behind the others, brazil, russia. now this is growth during the pandemic. china managed to make a strong recovery, 2.3 percent to the good in the, on the other hand, had a terrible pandemic in so many ways. everyone else on the list offered to. and

finally, this chart, these are the top 12 economies back in 2001. china is ranked at number 6. brazil sits at 11. you can't see india and russia, but they all in the top 20. and this is the top 12 in 2020, china's jumped 5 places. now the 2nd biggest economy in the world, india climbs up to fix place while brazil drops out of the top 10. so let's go through the brit countries in a little more detail in the 1st of all. and even jim o'neil, the economist who coined that bricks acronym, has acknowledged it have no simply disappointed in recent years. after theories of missteps by prime minister nor in de mody, he abolished the most commonly used bank notes failed and has promised to create 10000000 jobs a year. and any hopes of creating a 5 trillion dollar economy could be pushed back by the pandemic. the knock on effects of covet, have seen millions of people in the middle class drunk back into poverty,

brazil and russia, while they're far too dependent on the wells commodity cycle for their development . both missed grace targets in the last 10 years, with russia's troubles compounded by sanctions over the annexation of crime iep. and it's interference in the us elections. and finally, the south africa, the addition to the bricks, while on the 9 years of president jacob zoom as rule, almost $13000000000.00 was allegedly looted from the state. his imprisonment for not cooperating with the corruption inquiry has led to riots. but already there was so much anger in the country where unemployment sounds out of record 34.4 percent. ok, so let's get into all of us with edward gloss up on skype from london. edwards, the emerging markets economist at aberdeen, sounded investments welcome to count, take the cost that jim o'neil has joked in recent times that maybe rather than

breaks he should have coined the term ex was he writes a highlights the growth potential of these nations. i think he was obviously in the 2 thousands the book economies i think did live up to those lovely expectations. rapid growth, structural reforms over the past decade service is very disappointing. you know, the past decade pump, joint traded by crises. obviously we had china evaluation phase crises in brazil in russia, so it's not been a great last decade for sure. so what went wrong from brazil in russia? why haven't they hit their full potential? i think it's a combination of things over the external backdrop has become much less favorable. commodity prices have collapsed and they've rebounded more recently, but they're still truly much lower now. of course, domestically that they have had problems as well. so and so those big corruption scandals hit hit various presidents. and then of course in most you've had,

you had sanctions which are really crippled the economy and financial markets to where they ever really a proper block because they did meet regularly. they set up an infrastructure bank, but it also feels like they were kind of thrown together. yeah, i mean, i think they are, they are still meeting regularly or annually at the conference, but i think i know the meeting tend to generate very few headlines and very little substance. i think it's more as the, the kind of big sat piece and another case where, where be the major event there are many craig, much of a major substance. so what are your thoughts on china now going forward? is it just going to continue on this trajectory of continuous growth? but there is up to 2 main questions from china. really, one is kind of near to and one moment longer term was of course, as, as with most ems still grappling with with coded. and in particular is 0

covert approach. the crisis is really common on the scrutiny so that there is a question mark about how policy makers move forward with, with the coven policy, and whether they, what they relax, that policy. and then the 2nd one is just more generally kind of the extent to which structural growth is slowing. you know, always seeing, we've seen very weak growth numbers and over the past few quarters. how much about cyclical? how much that structural. and if it is to show how to policymakers actually start to really boost growth from hair post cove it. what about time is push the common prosperity. that's not trillions of the valley of stocks. yeah, i mean, i think, i think this, this, this column prosperity, goal is so many policies and that kind of come along, scientists think one of the main challenges for china is obviously you've had to regulate humans. it's crazy, massive ripples and fines for markets. and the key question, as always with chinese policymakers is how did a restructuring growth and how do they,

how do they kind of limit the funds for one abilities that may be growing on the surface while also trying to trying to be found. i'm preventing kind of moral hazard and why the financial system? what is interesting is that all for original nations also were led by populace leaders. now clearly some countries have suffered. but what does that tell us? well, i think it tells us the populace can popular has good size and bad size under the external environment. populous problem can be good. and the word there's nothing inherently bad about having popular policies. the problem is that when the external backdrop becomes unfavorable, or when you have extra micro vulnerabilities, then lists can often create funds for market volatility because they continue to continue to use popular policies come, you know, exacerbate the economic vulnerability. so i think it's all about context and

turning to india. what do you make of? nobody's humbling of the pandemic how they lived objects dictations. because he has them delivered on his promise to create those 10000000 jobs yet. yeah, i think obviously colbert has, has, you know, to say the least phone will span, are the works of that promise. i think mode is handling the pandemic has, has, has been weak, but not necessarily any weaker than policymakers elsewhere. you know, looking, looking at boston are, for example, in brazil. i think the key, the key task now to the government is to really ramp a vaccination race. because places like brazil and, and china have, have really don't quite well on the backs nation campaigns in india. and i'm also south africa has have really struggled on that funds that that is the key task promoting his government at the moment. and we're good to talk to edward gloss up speaking to us from london. edward is the emerging market economist at aberdeen standard investment. the news el

salvador has become the 1st company in the well to adopt bitcoin as legal, tender. the president has declared that the future for the country, but economists a warning that using the volatile and unregulated crypto currency is a risk. john home and reports from a launch, a stuffing town where bitcoin pilot project could full cost of her head. this is where are some of those big coin experiment? again, it was on a small surf with 3 years ago and anonymous donor, a local people digital. it with the crypto currency. now the country is expanding the experiment nationwide. and so with those about to become the 1st country in the world to use big coin as legal tender, it will run. that's another option alongside the current currency, us solar. we traveled 12 on tape to find out how the pilot program has gone and what it could mean for the rest of the country. we found plenty of, infuse just that each, like 70 percent of people in el salvador doesn't have

a bank account. he's big coin, well, it's a way for him to put some money aside. but they are. i have a low income, i don't move much money. the little i have, i spend on food. so with bitcoin, i can save up and that's the big coin is going up in value, is seen as smooth savings going to the problem is the big point swings down as well, at times heavily of the people here are set up with that as a p c, it's tough because it's unstable. for example, if you take a surf class and pay with bitcoin, i can accept it. but the next day it goes down and there are losses for me. it's the same for the bar, the shop everywhere. and imagine that volatility nationwide, one of the poorest countries in the americas, it can make the government's decision, seemed like a blind bet. a recent survey shows many people here might not take that, that 2 thirds say they don't want to be paid in bitcoin. and the facilities, the government hardly putting together the new currency,

might not convince them where you want to cash out your big quizzes, the actual dollars. you have to use one of the special atm and the government is a setting up $200.00 of these across the country. so let's see. do this. ok, and then the money should come out. the only ticket here is that these actually charge about 5 percent of commission to do the service. that's already been enough to put of someone else on why not just use dollars. one group who might see the benefits of the system, commission, or know a criminals. you'll see an unregulated but state sanction currency bill has been one of the advantages of bitcoin is down and committee, but for regulators, that's one of the risks. so the worry is that el salvador turns into a fiscal paradise for those who want to launder money from drugs or corruption. the president has been emphasizing the positives big coins will bring jobs,

financial inclusion, and investment. he says, especially as salvador will be the 1st to use it. the question is, will the country become a trailblazer will simply sink john home and how does it say el salvador? let's move to zombie now, which became the 1st country in africa to default on its debt g to the pandemic, zombie as problems pre date, the pandemic. and a lot of that has to do with dependence on copper prices, tanked and africa. the 2nd biggest copy exposure found it difficult to meet as payments on the government's been spending more money than it's been collecting in revenues. but in the last 2 weeks or so that b as currency in bond markets have been on a tier. and that has a lot to do with the election of hockey and h l. m. as the country's new president, his finance minister hopes to strike a deal with the international monetary fund for loan was ambia, have debts of about $12700000000.00. the international monetary fund could provide

$1300000000.00 in loans, but they are long term problems. the currency, the quite sure has depreciated 344 percent in the last decade, which is some inflation to almost 25 percent the highest into decades. gregory smith is with us now scott, from london, a former well bank economist in zambia, an author of the book where credit is due, how africa's debt can be a benefit, not a burden. and he, thanks for joining us on counting the cost. mr. smith. so where did it all go wrong for zambia? is this another case of the resources car design be an economy? it's been under real pressure the last 5 years and hasn't changed as much as it's potentially suggest. so wouldn't say it's all gone wrong, but there's a big mess and a lot of effort needed to turn the economy around. and it's true that the zambian

economy is very dependent on copper. but the notion of the resource curse to me sort of spells a sense of doom. and i'm an inevitability of challenge. but i think the ability of zambia to produce copper is also a huge opportunity. and as the world moves to net 0, we're going to need a lot of copper. and so i think zambia can work with the resources it has and produce much better economic outcomes for assistance. while the currency in bond markets are clearly liking what they're hearing from the new president, are they getting ahead of themselves? with the results of the election? there was a huge boosting confidence and both the zambian quite so rallied as did the 3 bonds ambia has that trade on global markets. and since then the euphoria has tapered a little bit. and i think wal b, i think this is sensible because anyone buying those bonds knows that they're in d for the interest is being paid and what investors are doing. they're looking at

the price of the phones versus what they think they will recover individual restructuring. so i think the next bit of confidence would come if the government couldn't get the right people in. and we've seen some announcements of the cabinet so far and they look good. but then next is the policies. these ministers come up with the, the national budget, the fact the, the fiscal saying for next year. and then from that we can work out whether they might get the support at the international monetary font. the new president has warned as possible, more debts than have been declared. how worried you about those? yes, i'm always worried about that. i analyze debts in many different countries. and in my book i write about how it's very difficult to define debt. there are many different measures and it's, it's, it's a complex matter in one countries measure is different to another. i think the different states that some people are arguing over what, what that is dispersed actually has been paid and what is contracted. so when you get the numbers from the ministry of finance,

you get one number. but if you add up all the different projects you've read about in the newspaper, you might get another number. and the other difficulty is what, what to include in the the nash debt view includes state and enterprises like electricity, utilities and things like that. and if, for example, in zambia, those have huge assets like hydro, electric dams but also debts. and it's a decision whether you put that on the government balance sheets or not. but then what we've seen over the last few months is the government, the form of government that was voted out just now, or hugely on domestic market between april and june. and the run up the election despite already being in the full and that's so that's a huge mass to unravel. there is always a tail risk of hidden debt as we very tragically saw remote m b. but that remains a tail risk and, and for many countries. but i think the biggest problem with that stocks is working with what definition is each person using and tends to in, in order to reconcile the numbers properly. now, one less resources and africa,

we often find china is trying to influence to power phrase your book, a benefit or burden. there's all sorts of chinese engagement in africa, in trade and business in diplomacy. and also a huge scale off of lending. china has been lending to zambia since the 70s. it started with a very large railway that would link zambia copper mines to doris alarm on, on the nation coast. and so we got a long history of this, but it had scaled up massively in the last 10 years. and that's why it's a whole chapter of my book is dedicated to china's lending and it pops up all the way through in the different chapters. and i think when i look at chinese landing, i've lived in zambia and travelled around the country. i see some wonderful projects, one and some, some dams, it'll produce electricity and in a carbon free way. and at the other end of the spectrum barrel, there were roads to nowhere, and there are expensive projects. so it's very difficult because there are many different chinese lenders,

many different chinese types of loans. china is also evolving as a lender. it starting to provide relief with doing that before the cobit pandemic. can you see kenya and in n gola? and since the pandemic has been providing debt suspension, their child is also changing as a lambda. gregory smith, really interesting to get your thoughts, gregory a former well bang economist in zambia. thank you. finally this week you might have heard about a global shortage of semiconductors. the chips which operate all sorts of electrical products, while as a result comic is sounds lose billions of dollars in sales this year. it's estimated $3900000.00 cars will not be made or that's almost 5 percent of global production, which will wipe out sales of a $110000000000.00. even so the flashy car shows have started up again though even they are evolving. as simmons went to look at some notice in munich, 2 years without the show when now europe's biggest come make

a germany takes center stage, asians and men. the id lies lots of razzmatazz and not a gas guzzler insight. here attempt to come and nerves of around 808000 german workers, dependent on the car industry was the outgoing german chancellor on this up when the on conduction. we want to pick up where we left off and allow the economy to really catch up. again. this can already be seen in the motor industry. even if some supply bottlenecks are costing shadows at the moment. those shadows take some of the shine off, electric car sales. the weakest link isn't range anxiety, your recharge infrastructure. it's the chip many millions of desperately needed semiconductor microchips to be exact. it's serial. i mean, there are manufacturers that had to stop certain production lines because they're missing out some c p o that they have to build into the car. and this will go on

for a couple of months. while the motor industry itself is doing really well, the shows promoted have crashed, cancellations because of cove. it have cost organizes more than $40000000000.00. even before the pandemic, the shows were losing money. so now, although at 1st sight you might not realize it, there are changes. it's shiny, it's new, futuristic, contemporary. but you might be forgiven for thinking. this is a ca show. the organizers say no. make over is underway. corporate consultants have dropped the word car from the events name. it's now a mobility show and the consultants have come up with what they think. a catchy questions, what we'll move on next, foodstuffs may be this, or thomas burst. so for those of us old enough to remember the bubble car, this one has its own brain. all electric motorcycles, power pedal bikes. another question, why are we here?

well, many big names from the united states and elsewhere didn't show up to answer that. the electric car is secure, the road ahead is green, but for the mobility show, the future may not be as smooth run. andrew simmons al jazeera music. well, in addition to that report from andrew economics editor, but ali had the chance to speech the chairman of daimler, better known as basically mercedes. he arts all i can yes about, among other things. the electric challenges from the lives of tesla and china is near. we are accelerating our path towards full electrification and indeed, by the end of this decade, we want to put the company in a position where we can go all electric, where market conditions allow. and already at the middle of this decade, every new vehicle architecture from mercedes benz will be electric only. and on the path to the dime lar,

s. a hole in the next 5 years will invest more than 70000000000 euros in these transforming technologies to make it happen. you mentioned the electrical touch it and they are going to be a lot less moving parts, particularly in the engine. what will that mean for jobs? there will be a change in profile on some jobs throughout this transformation this decade. and in the next decade, where some of the jobs that we know on the power train side on the combustion production will decrease. whereas we have job increases for the electrified power train or in totally different areas, such a software where we are currently hiring thousands of software engineers. the pandemic has really hurt supply chains in particular, semiconductors. when will the problem that clear up and what does that mean for production? code 19 has been a real stress test on many supply chains, including the semiconductors, which is affecting us. now,

you could maybe look at it as a traffic jam on a motorway. everybody's stops and it takes a while before all the car. so moving again, we hope and believe this quarter 3 represents the trough of the impact and we can gradually start getting back up again in q 4 towards more normal production levels. do you think the use desire to produce more chips in europe is realistic and beneficial. would have helped join the pandemic strategically. that is the right decision. but this here we're talking about something kind of 25 or beyond what you can do and foresee. and this is where you have to live with a certain level of uncertainty. the recent shutdowns have been because of cobra. what tests affected us most are shut down in malaysia. if you have a pen demik where you have to shut down a piece of production, i don't know how you would plan for that. do you have the battery capacity to deliver your road? i took a treat cause we have sourced with our partners up until the year 2025,

maybe beyond 2025. now we are accelerated strategy in 2 electrification weighed 200 gigawatt hours needed by the end of the decades. going fully electric were upping the ante and were discussing with our partners how we can increase the cell production footprint for us around the world. as well as working on a european initiative in this regard as well on calendar as chief executive, mercedes, thank you for your time. thank you for having me. that is all shy for this week, but i want to know what you think and what you want to see on the tweet or the money on. if you're tweeting the, please use the hash tag or email more. you think counting the cost out there. don't net address and there's always more on line that's out there. adult slash accounts, the cost. i'll take you straight to our home page. all our previous episodes are up

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